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Increase Awareness of

Fitbit in Pakistan
ONLINE PRESENCE REPORT
Table of Contents
Introduction...........................................................................................................................2
SOSTAC Analysis..................................................................................................................2
1. Situation (Where we are now?)....................................................................................2
1.1. SWOT Analysis:.......................................................................................................2
1.1.1. Strengths:.......................................................................................................................2
1.1.2. Weaknesses:..................................................................................................................3
1.1.3. Opportunities:................................................................................................................3
1.1.4. Threats:..........................................................................................................................3
1.2. Key Performance Indicator:.....................................................................................4
2. Objectives (Where do we want to be?).........................................................................4
3. Strategy (How do we get there?)..................................................................................4
3.1. Segments:......................................................................................................................4
3.2. Target Market:...............................................................................................................5
3.3. Positioning:....................................................................................................................5
4. Tactics (How exactly do we get there?)........................................................................6
4.1. 8P’s................................................................................................................................6
5. Action (What is our plan?).........................................................................................10
5.1. Project Planning..........................................................................................................10
5.2. Risk Involved..............................................................................................................12

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Introduction

Fitbit is an American company headquartered in San Francisco, California, known for its


products of the same name, which are activity trackers, wireless-enabled wearable
technology devices that measure data such as the number of steps walked, heart rate, quality
of sleep, steps climbed, and other personal metrics involved in fitness. Fitbit, a company was
founded in 2007 by James Park and Eric Friedman. The first product released was the Fitbit
Tracker in 2009. Since 2007, Fitbit has seen tremendous growth largely due to the rising
interest in healthy lifestyles. Fitbit is in a large, and growing market of health and fitness
tracking devices. While the market continues to grow and evolve, Fitbit holds 24.3% of that
market share, with 4.4 million devices shipped in the second quarter of 2015 alone. Fitbit has
used various types of advertising including TV commercials, and magazine ads. Along with
traditional advertising, Fitbit also has celebrity endorsement.
According to Wearable, in August 2015, Fitbit became the number one seller of
wearable technology. Between 2014 and 2015, Fitbit had an incredible growth of 158% and the
overall market for wearable technology is predicted to reach $74 billion by 2025. This leaves a
lot of room for Fitbit to continue to grow as a company, as well as innovate.
Using the SOSTAC Planning System, we will be evaluating FitBit’s products, as well as
their current marketing strategies.

SOSTAC Analysis

1. Situation (Where we are now?)

Fitbit is the leader in wearable technology, followed by Apple, Xiaomi, Garmin, and
Samsung. Fitbit, Xiaomi and Apple make up 37% of all sales. Apple in a third place. So what kind
of customers use wearable technology these days? With health and fitness being a growing
trend, Fitbit wants to target those individuals who are inactive and need motivation, those
wanting to get in shape, as well as athletic individuals who are looking to track their data.
Below is a brief analysis of FitBit’s strengths, weaknesses, opportunities, and threats.

1.1. SWOT Analysis:


1.1.1. Strengths:
 Provide a wide variety of product designs.
 Compatibility with smart devices.

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 User Friendly.
 Leader in health and wellness technologies.
 Fitbit has high financial power (Fortune, 2015).
 Provide variety of products at different prices depending on customers’ needs.

1.1.2. Weaknesses:
 People need motivation to wear the device regularly.
 Lack of advertisements outside of Social Media.
 Online Presence of Fitbit is low in comparison to other products.
 Limited features (no waterproof).
 Lack of brand awareness.
 Limited personalizing options.

1.1.3. Opportunities:
 New market for schools, hospitals, health insurance agencies and younger
individuals.
 More options for customization and innovations.
 Increased demand for a healthy lifestyle.
 Fitbit can enter Pakistan market which can show an interest in fitness and health.
 Sponsoring the Pakistan national teams will ensure brand recognition of Fitbit
enter the Pakistan market.
 Provide more guidance, coaching and recommendation to users.
 Sharing events and accomplishments on Social Media.

1.1.4. Threats:
 Existing competitors coming out with similar products and promotions.
 High global competition with many Chinese products.
 Introduction of Smart Watches.
 Privacy issue emerging from the set of fitness data collected from users.

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1.2. Key Performance Indicator:

 Sales in Pakistan
 Social Media Interaction
 Website Visit
 Brand Index
 Searches on Search Engines

2. Objectives (Where do we want to be?)

To create brand awareness


among 20% of the target
market by the
end of 2017.
To create brand awareness
among 20% of the target
market by the
end of 2017.

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o create brand awareness
among 20% of the target
market by the
end of 2017
o create brand awareness
among 20% of the target
market by the
end of 2017
o create brand awareness
among 20% of the target
market by the
end of 2017
 To Increase Brand Awareness among 45% of the target market by the end of 2018
 To Increase sales by 20% by end of June of 2019
 To Increase sales in sports recreational centers by 25% by the end of June 2019
 To Achieve a 15% market share in the market by the end of 2018
 To Increase website visits from within Pakistan by 70% by the end of 2018
 To Increase Searches related to Fitbit from within Pakistan on search Engines like google by 30%
by the end of 2018
 To Increase brand index by 50 points by the end of 2018

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 To Increase Social Media Activity related to Fitbit from within Pakistan by 10% by the end of
2018.

3. Strategy (How do we get there?)

3.1. Segments:

Fitness enthusiast in
Segment Base Generation X Generation Y
Generation X and Y
Geographic Around Pakistan Around Pakistan Karachi
• Age 35 to 50 • Age 18 to 35 • Age 18 to 50
Demographic • Income Upper/Middle Class • Income Middle/Lower Class • Income Upper/Middle Class
• Gender Male & Female • Gender Male & Female • Gender Male & Female
• Activities Leisure, fitness & • Activities Leisure & Leisure
• Activities Leisure & Work
Psychographic Work • Personality – Open Minded /
• Personality –Open Minded
• Personality -Conservative Conservative
Behavioral • Brand Loyalty- High • Brand Loyalty- Low/Medium • Brand Loyalty- High/Medium

3.2. Target Market:

FitBit and Xiaomi are currently tied with the largest share of the fitness band market at
13.7% followed by Apple (10.3%), Huawei (6.0%), Garmin (4.9%) and others (51.4%) (IDC
Worldwide Quarterly Wearable Device Tracker, November 30, 2017)

In Pakistan, we would choose to target Fitness Enthusiast between ages of 18-50 within
the Higher and middle-income class since the most profitable segments to target are fitness
Enthusiast as well as those who want to manage weight and adopt a healthier lifestyle. This
would fall into one concentrated market. Therefore, the targeting strategy of concentrated
targeting will ensure the market is targeted effectively.

3.3. Positioning:

In order to develop a successful positioning strategy, market segmentation and target


market need to be collectively collaborated. The positioning idea must have clarity which would
highlight the differential advantage of the product. The positioning strategy that can be adopted
by Fitbit is “Benefit-Focused Positioning”. FitBit has cleverly divided its product line on the basis
of price with the value fitness trackers labeled “Everyday Fitness”, The Moderately priced
category labeled” Active Fitness” and the premium category labeled “Performance Fitness”. This

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gives FitBit an upper hand over its competitors as it benefits a consumer gain from using
variable fitness related products is clearly shown. Therefore, following positioning statement is
proposed to be used in Pakistan Market

“Live a Fit Life Style”

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4. Tactics (How exactly do we get there?)

4.1. 8P’s

 Product:
Fitbit is a company that specializes in monitors that help individuals to track their
physical activity throughout the day. The products that are offered by Fitbit vary in
price and ability, some of which are worn on the belt and some are worn on the
wrist. On the low end of the spectrum is the Zip, which clips onto one’s belt and
primarily monitors steps taken throughout the day. On the high end of the spectrum
is a product called the Surge. The Surge is worn on one’s wrist and not only monitors
steps taken but GPS location and pulse rate. Additionally, the Surge connects to
one’s smartphone and allows them to control music and see notifications from the
Fitbit.
Currently there are 4 different categories for FitBit product.
 Trackers (Zip 2, Alta, Flex 2, Charge 2)
 Smart Watch (Ionic, Versa)
 Fitness Scale (Aria 2)
 Fitness Coach (Personal training app)
Fitbit accessories focusing on alternative bands for the small tracker that you insert
into the bands.

 Price:
FitBit is not design for everybody, it is design for the value conscious customers that
have disposable income. She/he is willing to pay for products that have received
good reviews on improving health habits.
To buy a FitBit on their website the price ranges from $59.95 to $329.95, this is to
buy a ready to use FitBit, they also have many accessories available ranging from
prices $4.95 to $295. Meaning their most expensive product is actually an accessory,
which is shown on the picture. The more features the FitBit band has the more
expensive it becomes, although they also increase price on the more ‘stylish’
products.
FitBit use 2 types of revenue models.

 Subscription model for Premium services such as Fit Coach.


 Markup model for its products.

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 Place:
Fitbit promotes and sells its products online at www.fitbit.com. Fitbit products are
also sold online at shopping websites such as Daraz. FitBit can be found in many
department stores, including Hyperstar, Naheed store as well as sporting good and
outdoor stores including health institutes and gyms.
FitBit products are also sold on many different social media stores (Facebook pages,
Instagram pages).

 Promotion:
Following methods will be used to promote FitBit in Pakistan.

 Television Advertisement:
Small clips featuring the products being used by professional Sports man
such as Pakistan cricket team’s captain “Sarfaraz” and retired famous sports
man such as “Wasim Akram”, “Shahid Afridi”.

 Paper Media Advertisement:


FitBit products can be promoted in newspaper and magazines with product
details and images with different quotes to motivate people to live a healthy
life.

 Social Media Advertisement:


FitBit products can be promoted through the following:
 Social Challenges:
Challenge between friends or family on different stages such as
calories burn, calories taken, steps taken, walk, stairs climbed etc.
 Social Interaction:
Promote FitBit products on different sports, weight loss, health, and
diet related groups such as “Weigh Loss Motivation” using sponsored
posts and products reviews.
 Social Communication:
FitBit can make a separate Social Media page for Pakistani market providing
support and featuring local athletes and actors in their promotions.
 Social Campaigns:
FitBit can arrange a celebrity challenge in which different celebrities face off
against each other in a stepping challenge to raise awareness of Tabba
Heart Institute. The winning celebrity will be given different FitBit products
and 2 years Fit Coach subscription. FitBit will donate 1,00,000 Rupees to
Tabba Heart Institute.

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 Blogs:
The Fitbit blog is another form of online consumer engagement. The Fitbit
blog features different resources to help users say active, eat healthy, be
inspired, and stay in the know with Fitbit news. The blog serves as a strategic
communication form for building brand awareness and positive branding
image.
FitBit will also contact famous vloggers such as “Zaid Ali”, “Ducky Bhai”,
“Junaid Akram” etc. to promote their products in their videos.

 Live Events:
Events will be held throughout the country in different educational Institutes
to provide awareness about the product and the benefits of being fit to the
younger audience while providing them discounted prices.
A Country wide Event will be conducted to rank the fittest cities of Pakistan.
This event will require around 100 contestants from each city to wear FitBit
trackers that they own or lent from the organizers for the event to walk a
total of 300,000,000 steps. The Cities which complete the required tasks will
be ranked among fittest cities of Pakistan. Lent trackers can be purchased by
the contestants at discount prices.

 Sponsorship:
To Increase awareness of the products. Fitbit will sponsor different events
that happen throughout the city.
Marathons, Tournaments and other sports events including e-sports events.
can be sponsored to provide live stats about the players to the audience of
those events.

 People:
 Fitness enthusiast and Health Conscious:
We will target Fitness Enthusiast and Health Conscious people as they are most
likely to buy our product to track their daily fitness routine.

 Over Weight Audience:


We will target Over Weight Audience with our product as a way for them to track
their calories intake and calories burned, as well as provide them with Professional
fitness training.

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 Generation X:
We will Target Generation X with our high end products as they have more
disposable income. They are also more brand loyal so they will be given the best
that FitBit has to offer

 Generation Y:
We will Target Generation Y with our middle and Low-end products due to their
limited budget and low disposable income. Events will be held in colleges and
Universities to offer discounted prices for these targets.

 Physical Evidence:

 As Fitbit does not possess their own retail outlets, the company invests in
branding stores which sell Fitbit products.
 FitBit offers users with the option to try their watches and trackers which are
being sold by different branding stores.
 During event sponsorships Fitbit invests heavily to brand the product.

 Process:

Customer complaint process


This refers to the after sales services offered by Fitbit. Fitbit has a 24-hour customer
complaint. This process is highly integrated and the response to the feedback is highly
responsive. The same Quality of service will be offered in Pakistan.

 Partnership:

 Daraz – Daraz is one of the most used E-Commerce site in Pakistan and traffic of
user is increasing day by day so they have a good customer base to sell FitBit
Products to.
 Yayvo.com (TCS) – Yayvo is one of the TCS service that works same as Daraz thus it is
another platform to sell FitBit Products on because TCS is a well renowned brand
that has a lot of customers.
 Home Shopping – Home shopping is also another E-Commerce website that could
help to get E-Customers to buy FitBit Products

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 FitBit can establish Partnerships with different Gyms and Health Institutes to offer
their products at a discount price to their Customers.
 FitBit can Partner with Online Technology, Health and Sports Content Creators to
promote their Products in the different content they create.

5. Action (What is our plan?)

5.1. Project Planning

The Above Plan is going to be carried out by the team of professionals listed below within the
provided timeline

 Work Distribution:

Action Item Responsible Party Start Date End Date Remarks


Create Print and Television 1/7/18 31/10/18 Create Ads for these Media’s using
Ads Adify (Ad Creation Company)
Create Social Media Page 1/6/18 31/8/18 Create Social Media Site using
and Establish partnership company Computer Department and
with content creators and contacting
bloggers
Send Product to Partnered 1/9/18 31/10/18 Stock products on Retail shops and
Retailers and Add Products Websites to fulfill demand when
on Partnered Sites. Product becomes aware in the
Market
Air Ads on Television, 1/10/18 31/5/19 Introduce the Product to the Target
Paper and Social Media Market
Host Events on Social 1/11/18 30/6/19 Events will be hosted to keep
Media and FitBit Website Customers interested about the
product and their fitness
Live Events in Educational 1/2/19 31/5/19 Events will be hosted to introduce
Institutes younger Audience to our product in
their Colleges and Universities
Monitor Social Interaction 1/10/18 30/6/18 Monitor Social Interaction of our
product using different Social
Listening tools and software

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 TimeLine:

Events Month/Year
9/1 12/1 4/1
6/18 7/18 8/18 10/18 11/18 1/19 2/19 3/19 5/19 6/19
8 8 9
Create Television Ad’s
Create Print Media Ad’s
Create Social Media
page for Pakistan
Establish Partnership
with Daraz and other E-
Commerce sites and
Content Creators
Contact blogger and
vloggers to review and
promote product
Air Television Ad’s
Distribute Print Media
Ad’s
Host contests and
competitions on social
media
Sell Products on
Partner’s sites
Partner with Health
Institutes and Gyms
Sell Products on
Partnered Health
Institute’s and Gyms
Promote Product on
different Social Media
Platforms using different
created Content
Host Events in
Educational Institutes

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5.2. Risk Involved

6. Plan A
Continue Upgrades on Product to guarantee customer Satisfaction. As technology
advances, FitBit products can continue to add features such as making it waterproof
or enabling it to monitor water intake.
7. Plan B
If the Market Becomes Saturated with Activity Trackers, Upgrade the product so it is
no longer relying on 3rd party applications like smart phones.

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